Since June 1, 2019 starts the prolongation of capital amnesty that provides relief from responsibility for currency and tax violations for Russian citizens who have returned their assets to the country voluntarily.

According to the Ministry of Finance, during the previous stages about 19,000 returns have been filed, and assets of several billions dollars have been returned.

Amnesty extension will last until February 29, 2020. In the course of this period Russian citizens can declare their foreign property and accounts, receive an exemption for personal income tax and corporate profit tax of foreign companies under their control, if registered as tax residents of Russia.

Relief from criminal responsibility is guaranteed by amendments to Article 761 of the Criminal Code of the Russian Federation.

Cash assets are to be returned to Russian banks, and companies are to be re-registered in special administrative districts of the Kaliningrad region and Primorye territory. In these regions budget taxes are set at zero rate. Zero rate is also set for dividends paid by holding companies to majority shareholders that own over 15% of the company’s capital for at least a year before the decision to pay dividends. Income of foreign persons from shares of public holding companies are taxed at 5% rate.

The advantages of this amnesty scheme are beyond question. The issue of assets preservation for business becomes more and more urgent under the conditions of increasing sanctions pressure.

Information agency Credinform represents an overview of activity trends of the largest companies in the real sector of the economy of the Republic of Crimea and Sevastopol.

The regional companies with the largest volume of annual revenue (TOP-1000) were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2015-2017). The analysis was made on the basis of the data of the Information and Analytical system Globas.

Net assets is an indicator, reflecting the real value of the property of an enterprise, is calculated annually as the difference between assets on the balance sheet of the enterprise and its debt obligations. The indicator of net assets is considered negative (insufficiency of property), if company’s debt exceeds the value of its property.

The largest regional company in terms of net assets is GUPSRF RESPUBLIKI KRYM CHERNOMORNEFTEGAZ INN 9102048801. Net assets of the company amounted to 114 billion rubles in 2017. The smallest size of net assets in TOP-1000 enterprises were owned by VETRYANOI PARK KERCHENSKY LLC Insufficiency of assets of this company was expressed by a negative value - 3.4 billion rubles.

The average values of net assets of TOP-1000 enterprises tend to increase over the three-year period (Picture 1).

Picture 1. Change in the average indicators of the net assets value of TOP-1000 enterprises in 2015 – 2017

The shares of TOP-1000 enterprises with insufficiency of assets have a tendency to decrease in the last three years (Picture 2).

Picture 2. Shares of enterprises with negative values of net assets in TOP-1000

Sales revenue
ОThe revenue volume of 10 leading regional companies made 22% of the total revenue of TOP-1000 in 2017 (Picture 3). It points to a low level of industrial concentration in the Republic of Crimea and Sevastopol.

Picture 3. Shares of participation of TOP-10 companies in the total revenue of TOP-1000 enterprises for 2017

In general, there is a trend towards an increase in revenue volume (Picture 4).

Picture 4. Change in the average revenue of TOP-100 enterprises in 2015 – 2017

Profit and losses
The largest regional company in terms of net profit is GUPSRF RESPUBLIKI KRYM CHERNOMORNEFTEGAZ INN 9102048801. Company's profit amounted to 37,6 billion rubles in 2017.

In general, there is a tendency to increase the average size of profit in the TOP-1000 over the three-year period (Picture 5).

Picture 5. Change in the average values of profit of TOP-1000 enterprises in 2015 – 2017

Average values of net profit’s indicators of TOP-1000 companies increase for the three-year period, at the same time the average value of net loss decreases. (Picture 6).

Picture 6. Change in the average values of indicators of net profit and net loss of TOP-1000 companies in 2015 – 2017

Key financial ratios
Over the three-year period the average indicators of the total liquidity ratio Тof TOP-1000 enterprises were above the range of recommended values - from 1,0 up to 2,0, with a tendency to increase (Picture 7).

The total liquidity ratio (the relation of the amount of current assets to short-term liabilities) shows the sufficiency of company’s funds for repayment of its short-term liabilities.

Picture 7. Change in the average values of the total liquidity ratio of TOP-1000 enterprises in 2015 - 2017

There has been a high level of average values of the return on investment ratio for three years, with a tendency to increase. (Picture 8).

The ratio is calculated as the relation of net profit to the sum of own capital and long-term liabilities and demonstrates the return on the equity of own capital involved in the commercial activity and the long-term borrowed funds of an organization.

Picture 8. Change in the average values of the return on investment ratio of TOP-1000 enterprises in 2015 – 2017

Asset turnover ratio is calculated as the relation of sales proceeds to the average value of total assets for a period and characterizes the efficiency of use of all available resources, regardless of the sources of their attraction. The ratio shows how many times a year a complete cycle of production and circulation is made, yielding profit.

This ratio of business activity showed a tendency to decrease over the three-year period (Picture 9).

Picture 9. Change in the average values of the asset turnover ratio of TOP-1000 enterprises in 2015 – 2017

Small business
76% of TOP-1000 companies are registered in the Register of small and medium-sized businesses of the Federal Tax Service of the RF. At the same time, their share in the total revenue of TOP-1000 enterprises amounted to 41%, that is almost two times higher than the national average (Picture 10).

Picture 10. Shares of proceeds of small and medium-sized businesses in TOP-1000 companies

Main regions of activity
The TOP-1000 companies are TOP-1000 enterprises are registered in 23 and distributed unequal across the region. Almost 73% of the largest enterprises in terms of revenue are concentrated in Simferopol and Sevastopol (Picture 11).

Picture 11. Distribution of the revenue of TOP-1000 companies by regions and inhabited localities of the Republic of Crimea and Sevastopol

Financial position score
An assessment of the financial position of TOP-1000 companies shows that more than half of them are in a stable financial position and above average (Picture 12).

Picture 12. Distribution of TOP-1000 companies by financial position score

Solvency index Globas
Vast majority of TOP-1000 companies got Superior/High or Strong/Medium Solvency index Globas, that points to their ability to pay off their debts in time and fully (Picture 13).

Picture 13. Distribution of TOP-1000 companies by solvency index Globas

Industrial production index
According to the Federal Service of State Statistics, there is a tendency towards an increase in indicators of the industrial production index in the Republic of Crimea and Sevastopol during 12 months of 2018 (Picture 14). At the same time, the index indicator from month to month was amounted to 102,7%.

Picture 14. Average industrial production index in the Republic of Crimea and Sevastopol in 2018, month to month (%)

According to the same information, the share of enterprises of the Republic of Crimea and Sevastopol in the amount of revenue from the sale of goods, works, services made 0,22% countrywide for 2018.

Conclusion
A comprehensive assessment of activity of the largest companies in the real sector of the economy of the Republic of Crimea and Sevastopol, taking into account the main indices, financial indicators and ratios, points to the prevalence of positive trends (Table 1).

Table 1. Positive and negative trends, evaluation factors of TOP-1000 companies

Trends and evaluation factors of TOP-1000 enterprise	Specific share of factor, %
Rate of growth (decline) in the average size of net assets	10
Increase / decrease in the share of enterprises with negative values of net assets	10
Concentration level of capital	10
Rate of growth (decline) in the average size of revenue	10
Rate of growth (decline) in the average size of profit (loss)	10
Growth / decline in average values of companies’ net profit	10
Growth / decline in average values of companies’ net loss	10
Increase / decrease in average values of total liquidity ratio	5
Increase / decrease in average values of return on investment ratio	10
Increase / decrease in average values of asset turnover ratio, times	-10
Share of small and medium-sized businesses in the region in terms of revenue being more than 22%	10
Regional concentration	-10
Financial position (the largest share)	10
Solvency index Globas (the largest share)	10
Industrial production index	10
Average value of the specific share of factors	7,0

positive trend (factor), negative trend (factor).